Online retail is changing rapidly: with the Universal Commerce Protocol, Google is driving the shift of the purchasing process into AI-based interfaces. Product discovery, advice and checkout are merging and increasingly taking place outside traditional shops. This raises a central question for retailers: what role remains when platforms control the moment of purchase?
The Universal Commerce Protocol (UCP) is shifting the purchasing process in digital commerce into AI-based interfaces such as Google Gemini or Google’s AI mode. At present, the concept is being rolled out in the US market and is not yet globally available.
This development is intensifying the existing dynamics of digital commerce. New, dialogue-based entry points guide users directly into the purchasing process, meaning that product discovery, advice and transactions are increasingly taking place outside retailers’ own shops. For retailers, this represents a structural shift: platforms such as Google are evolving into independent transaction environments that not only capture attention but also enable purchases.
Forrester summarises the challenge clearly: “Merchants will have to figure out how to coexist with this new shopping experience.” — Emily Pfeiffer, Principal Analyst, Forrester Research, Predictions 2026: The Agentic Commerce Race in Digital Commerce
This raises a fundamental question: what role remains for retailers in an ecosystem where the customer journey increasingly begins and ends outside their own touchpoints?
What is the Universal Commerce Protocol (UCP)?
The Universal Commerce Protocol (UCP) is a concept initiated by Google to standardise commerce processes in AI-driven environments. Its aim is to structure product data, availability, interactions and transactions so they can be seamlessly integrated into and processed within conversational interfaces.
UCP does not exist in isolation but builds on existing approaches to standardising product data and transactions, from traditional feed formats to API-based integrations. The key difference lies in its direct integration into AI-driven interactions and decision-making processes.
This creates a model that, in its logic, resembles traditional marketplaces: product data is made centrally available, while interaction and transaction increasingly take place via the platform. At the same time, UCP is part of a broader shift towards interconnected protocols and systems that enable communication between AI, platforms and retailer systems.
What UCP means for retailers
For retailers, UCP first and foremost raises a fundamental strategic question: what role do they want to play in such a platform-driven model, and do they want to participate at all?
For brands in particular, a strong dependence on platforms can be critical, as it may reduce control over customer access, brand perception and differentiation.
If retailers decide to participate, the Universal Commerce Protocol requires product data to be prepared in such a way that AI systems can clearly understand and interpret it. At the same time, new dependencies arise, as key parts of the customer journey and transaction logic shift into the domain of large platform providers.
Additionally, the availability and implementation of such models can vary by region. New commerce functionalities are often rolled out first in selected markets, meaning retailers must take into account international differences in infrastructure, regulation and user behaviour.
How does UCP work in detail?
The Universal Commerce Protocol is based on the interaction of multiple actors that enable transactions directly from AI-driven interactions. Retailers provide structured product and inventory data, while Google acts as the orchestrator of the front-end interaction. This setup is complemented by payment services for processing transactions and credential providers for managing identities and permissions.
In a typical scenario, a user expresses purchase intent. The AI interprets this, accesses connected data sources and initiates the transaction directly. Systems such as Merchant Center remain central components, serving as both the data foundation and integration layer.
In practice, challenges quickly emerge: incomplete product data, inconsistent structures or a lack of real-time capabilities can significantly hinder these scenarios. Integration is not automatic but requires a deliberately prepared system landscape.
Two integration approaches and what they mean for retailers
Native checkout
With native checkout, transactions are processed directly within the Google environment. The advantage is a quick start and low integration effort. Processes are largely standardised, and technical complexity remains manageable. However, opportunities for differentiation are limited, and retailers relinquish some control over the customer experience and processes.
Embedded checkout
With embedded checkout, retailers integrate their own checkout processes into the interaction. This allows greater control over brand, processes and customer experience. At the same time, integration effort increases, and the demands on the existing system landscape are significantly higher.
What UCP means for existing commerce architectures
The Universal Commerce Protocol introduces new requirements for existing commerce architectures. The chosen integration approach has a direct impact on system landscapes. Regardless of the approach, demands on data, processes and integration increase significantly.
Product data must be structured, consistent and available in real time so that it can be both delivered and interpreted by AI systems. APIs become the central integration layer through which systems are connected.
Where existing systems reach their limits
Many existing shop and PIM systems struggle with processing and delivering product data in real time, as well as supporting AI-driven scenarios. They are often historically grown and not designed for such dynamic requirements.
At the same time, the role of data is changing. Product information is no longer used solely for display within a retailer’s own shop but becomes the basis for external platforms, AI-driven recommendations and transaction-related processes.
A powerful PIM system thus becomes a key requirement. Only when product data is maintained in a context-aware way, delivered flexibly and made available across systems can the requirements of the Universal Commerce Protocol be met. For retailers, this means aligning their architecture towards flexibility, integration capability and data quality.
Strategic implications of UCP: new dependencies and opportunities
The Universal Commerce Protocol reinforces the shift of the customer journey towards platforms.
In its effect, it resembles traditional marketplaces: these offer additional reach and simplified transactions, while simultaneously shifting control over the moment of purchase towards the platform.
At the same time, new opportunities arise. Platforms create additional reach and shorten the path to purchase. The key question is therefore not only whether retailers use these channels, but how consciously they define their role within them.
UCP does not replace existing sales channels but complements them. Successful retailers combine platforms with their own touchpoints to increase visibility while actively managing the customer relationship.
Conclusion: A relevant architectural concept with strategic implications
The Universal Commerce Protocol intensifies existing dynamics in digital commerce by bringing together AI, platform economics and transaction logic.
For retailers, this creates a need for action, initially on a strategic level. They must define their role in dealing with platforms and align their data foundation, system landscape and integration capabilities accordingly.
Participation in such models is not a given but a deliberate choice.
Those who choose to participate cannot rely on mere presence. Product data and content must be prepared in such a way that AI systems actively select them, while retailers must also ensure that they do not relinquish the customer relationship entirely to the platform. Losing access to the moment of purchase means losing a key lever for shaping that relationship.
novomind has been addressing these challenges for many years through its expertise in complex product data and commerce structures.
This creates the foundation for maintaining visibility in AI-driven commerce and preserving influence over the purchasing process.
FAQ
Will the Universal Commerce Protocol replace traditional online shops?
No, the Universal Commerce Protocol will not completely replace online shops, but it will fundamentally change their role. Transactions can increasingly take place directly within AI-based interfaces, while the shop itself becomes more of a brand, data and experience platform.
What requirements must retailers meet for UCP?
Retailers primarily need high-quality, integrated product data. In addition, flexible APIs and an integrated system landscape are essential to provide data across platforms and integrate it into AI-driven processes.
What risks does the Universal Commerce Protocol pose for retailers?
The main risk is losing direct access to the moment of purchase. When platforms control interaction and transactions, retailers lose control over customer data, brand perception and differentiation.
How does UCP differ from existing marketplaces?
The Universal Commerce Protocol is similar to marketplaces in centrally managing interaction and transactions, but goes further by integrating product discovery, advice and purchasing directly into AI-driven conversations without requiring users to access traditional platform interfaces.
When should retailers start addressing the Universal Commerce Protocol?
Retailers should engage with the Universal Commerce Protocol early, as requirements for product data, systems and integration are already increasing. Otherwise, they risk not being considered in future AI-driven purchasing processes.